Carson approves $8M bailout for Cormier Chevrolet

CARSON, Calif. 
The giant Cormier Chevrolet dealership is getting a nearly $8 million bailout from the city of Carson.

The City Council approved a plan late Tuesday that calls for the Redevelopment Agency to acquire the dealership's property and lease it back for five years at a subsidized rate.

It's designed to keep the 43-year-old dealership in operation.

Slumping auto sales nationwide has GMAC, the financial arm of General Motors, calling in dealer loans. Without the city's help, the dealership would be unable to pay a $2.6 million debt to GMAC and would close.

Cormier Chevrolet brings some $550,000 in annual sales tax revenues to city coffers. City officials say it is important to protect existing sources of revenue.